Why Western Digital (WDC) Stock is Gaining Today

Western Digital (WDC) stock is continuing to advance on Thursday morning after the company announced CFO Olivier Leonetti will step down and after boosting its fourth quarter outlook.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Western Digital (WDC) - Get Report are climbing 4.58% to $47.54 late Thursday morning after the company said CFO Olivier Leonetti will step down effective September 1.

Mark Long, the company's EVP and chief strategy officer, will succeed him.

Leonetti is leaving Western Digital "to pursue other opportunities," according to a statement after yesterday's market close.

Additionally, the company said it now expects 2016 fiscal fourth quarter revenue of about $3.46 billion vs. its previous view of $3.35 billion to $3.45 billion.

Analysts are modeling revenue of $3.42 billion for the period.

The raised guidance reflects the company's acquisition of SanDisk in May.

Western Digital is scheduled to report earnings on July 28.

The Irvine, CA-based computer data storage company is also one of the largest computer hard disk drive manufacturers.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.

But the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: WDC

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